Those applying for a motor vehicle dealer license in North Carolina are required by the North Carolina Division of Motor Vehicles – License & Theft Bureau to submit and maintain a surety bond in the amount of $50,000. If the dealer has more than one location, an additional $25,000 bond is required for each subsequent business location.
By posting this bond, the principal (vehicle dealer) agrees to comply with all regulations of Articles 12 and 15 of Chapter 20 of the North Carolina General Statutes. If any person suffers a loss due to fraud, fraudulent representation or violation of these statutes, a claim can be filed against the bond. If the claim is found to be valid, the surety is required to pay damages to the harmed parties. The principal is then responsible to reimburse the surety of any monies paid out.
North Carolina motor vehicle dealer bonds are continuous, and cannot be canceled by the surety unless one of the following happens:
- The auto dealer has ceased operations, or the business license has been suspended or revoked
- Nonpayment of bond premium
- The auto dealer or employees commit an act of misrepresentation or nondisclosure when obtaining or renewing the surety bond
The surety can refuse to renew the bond by providing written notice of nonrenewal to the license holder and Commissioner of Motor Vehicles 30 days prior to the effective cancelation date.
Pacific Surety is proud to offer a variety of approvals regardless of credit. The process typically takes just a few hours for a quote, and we have the ability to beat any competitors pricing. If you have any specific questions, feel free to contact our knowledgeable underwriting staff.
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Motor Vehicle Dealer Surety Bonds – North Carolina
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